02032026 V2 Presentation WR.pdf

City of Buckeye — Regular Council Meeting (2026-02-03)

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City Council Meeting:

Utility Rate Notice of Intent

Terry Lowe, Water Resources Director

Jared Askelson, Deputy City Manager
February 3, 2026

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Timeline

¢ Citizen Water & Wastewater Rates Committee (WRC)

¢ July -September 2025: Bi-Weekly Meetings

o Public Outreach Approach

o Deep Dives into each Utility’s Operations & Asset Demands
o Utility Rate Structure Analysis

o Comparisons to other Utility Providers

o Utility Rate and Enterprise Fund Analysis

o Recommendations

* Oct. 9, 2025: Voted on Recommended Rate Cycle, Structure,
Fees

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Timeline

* October 2025
¢ Media campaign
¢ EOB, social media, informational flyers

¢ November 2025
* Community Outreach Meetings Held
¢ Rate Discussion Videos Released

¢ December 2025
* Meetings with HOAs

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Next Steps

* Today: Council to adopt notice of intent
¢ April 7**: Council to adopt rates

¢ May 13%: New rates go live

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Next Steps

* Today: Council to adopt notice of intent
¢ April 7**: Council to adopt rates

¢ May 13%: New rates go live

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Today’s Agenda

* Recommended Rates & Impacts

¢ Comparisons
¢ Bills
¢ Other Municipalities

¢ 1/20/2026 Council Workshop Follow Up

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Recommendations

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Recommendations

* Gradualism
* Rate changes will be steady and incremental

* Four-year rate plan
¢ WRC had recommended five-year plan

¢ New rate structure
¢ Incentivize conservation
¢ Fairness to customers

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Water Base Rate Recommendation

Current Base Rates Residential and Landscape - Proposed Base Rates
$35.99 $29.65 $22.17 3/4” $30.02 $31.30 $32.63 $34.01
$35.99 $86.61 $60.06 1” $33.36 $34.77 $36.25 $37.79
$35.99 $86.61 $60.06 1.5” $66.51 $69.34 $72.29 $75.36
$35.99 $225.92 $160.19 2” $106.46 $110.98 $115.70 $120.62
$35.99 $225.92 $160.19 3” $213.12 $222.18 $231.62 $241.46
$35.99 $420.94 $300.36 4” $332.96 $347.11 $361.87 $377.25
$35.99 $699.53 $500.59 6” $665.73 $694.02 $723.52 $754.26
$35.99 $1,396.00 $1,001.18 8” $1,065.20 $1,110.47 $1,157.67 $1,206.87
$35.99 $1,396.00 $1,001.18 10” $1,531.39 $1,596.47 $1,664.32 $1,735.06

*Current rates include $3.05 Replacement Fee for Residential and Potable Landscape 9

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Water Base Rate Recommendation

Current Base ,
Commercial - Proposed Base Rates
Rates

Commercial /

$37.40 3/4” $70.20 $73.18 $76.29 $79.53
$111.04 1” $78.00 $81.31 $84.77 $88.37
$111.04 1.5” $155.53 $162.14 $169.03 $176.22
$290.85 2” $248.94 $259.52 $270.55 $282.05
$290.85 3” $498.35 $519.53 $541.61 $564.63
$542.68 4” $778.59 $811.68 $846.17 $882.13
$902.43 6” $1,556.71 $1,622.87 $1,691.84 $1,763.74

$1,801.80 8” $2,490.82 $2,596.68 $2,707.04 $2,822.09

$1,801.80 10” $3,580.94 $3,733.13 $3,891.78 $4,057.18

*Current rates include $3.05 Replacement Fee 1 O

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Water Usage Rate Recommendation

Residential Usage Rates

0-6k (98.5%)* $3.93 $4.77 $4.97 $5.18 $5.40
6,001— 10k (.6%)* $4.91 $5.96 $6.22 $6.48 $6.76
10,001 —20k(.84%*) $6.14 $7.45 $7.77 $8.10 $8.44
20,001 -30k (.03%)* $7.68 $9.69 $10.10 $10.53 $10.98

30,001+ (.04%)* $9.59 $12.60 $13.13 $13.69 $14.27

* percentage of bills **prior structure 1 1

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Water Usage Rate Recommendation

Potable Landscape Usage Rate

0 -50k (75%)* $6.61** $7.02 $7.32 $7.63 $7.96
50,001+ (25%)* $7.93** $8.78 $9.15 $9.54 $9.94

Non-Potable Landscape Usage Rate

Proposed

Current

Per Thousand Gallons $3.30 $4.77 $4.97 $5.18 $5.40

* percentage of bills **prior structure 1 2?

Water Usage Rate Recommendation

Commercial Usage Rate

0- 10k (50%)* $8.08 $9.45 $9.86 $10.27 $10.71
10,001 - 30k (20%)* $8.08 $9.93 $11.09 $11.56 $12.05
30,001 - 50k (8%)* $8.08 $9.93 $12.47 $13.00 $13.55
50,001+ (23%)* $8.08 $9.93 $12.47 $14.63 $15.25
* percentage of bills **prior structure 1 3

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Water Monthly Impact

Current 9
. % Change

Residential 1” Meter, 6K/month usage $59.57 $61.98 4.0% $64.61 $67.36 $70.22
Commercial 1” Meter, 15K/month usage $232.24 $222.19 -4.3% $235.32 $196.80 $205.15
Commercial 2” Meter, 20K/month usage $452.45 $442.78 -2.1% $468.98 $334.05 $348.23
Landscape 2” Meter, 20K/month usage $358.12 $246.89 -31.1% $257.38 $268.32 $279.73
Landscape 2" Meter, 500K/month usage $4,124.92 $4,407.14 6.8% $4,594.44 $4,789.71 $4,993.27
Non-Potable 2” Meter, 150K/month usage $655.19 $821.96 25.5% $856.89 $893.31 $931.28
ofuasetlaee 2” Meter, 800K/monthusage $6,754.85 $8,188.18 21.2% $10,181.78 $11,682.15 $12,177.23

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Wastewater Base & Usage Rate Recommendations

Residential Base Rate
Current 2027
(per Meter | (perMeter Size) |

<1” (99.95%) $28.86 $39.44 $42.20 $45.15 $48.31
a
aac gallons) $2.00

Current 2027
(per Meter iii s

$19.12 $43.50 $46.55 $49.80 $53.29

1” (37%) $60.06 $72.65 $77.73 $83.17 $88.99
1.5” (11%) $60.06 $144.86 $154.99 $165.84 $177.45
2” (48%) $160.19 $231.86 $248.08 $265.45 $284.03
3” (1.5%) $160.19 $464.15 $496.64 $531.40 $568.60
4” (1.68%) $300.36 $725.15 $775.91 $830.22 $888.33
6” (.55%) $500.59 $1,449.86 $1,551.34 $1,659.94 $1,776.13
Fcommussgerate Tt
(per thousand gallons) $2.51 $4.00 $5.00 $5.72 $6.13 1 5

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Wastewater Monthly Impact

Current to 2026

1” Meter, any usage $36.86 $39.44 7.0% $42.20 $45.15 $48.31
1” Meter, 15K/month usage $97.71 $132.65 35.8% $152.73 $168.97 $180.95

2" Meter, 20K/monthusage $210.39 ~—«$311.86 48.2% $348.08 $379.85 $406.64
MRecmeriae 2” Meter, 800K/month usage $2,168.19 $3,431.86 58.3% «$4,248.08 $4,841.45 $5,188.35

*Assumes: Base + Usage Rate of 4 kgal usage 1 6

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Recommended Bill Comparisons

Residential Bill Totals
1" Meter, 6K Water, 4K Wastewater

Water Base $32.94 $33.36
Water Consumption $23.58 $28.62
Sewer Base $28.86 $39.44
Sewer Consumption $8.00 $0.00
Garbage and Recycling $25.53 $25.53
Environmental Fee $5.00 $5.00
Repair & Replacement Fee $3.05 $0.00
Sales Tax $6.01 $7.64
AZ Water Quality Tax $0.04 $0.04
Bill Total $133.01 $139.63
Dollar Amount Increase $6.62
Percentage Increase 5.0%

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Recommended Bill Comparisons

Commercial Bill Totals
1" Meter, 15K Usage

Water Base $107.99 $70.20
Water Consumption $121.20 $144.15
Sewer Base $60.06 $72.65
Sewer Consumption $37.65 $60.00
Environmental Fee $5.00 $5.00
Repair & Replacement Fee $3.05 $0.00
Sales Tax $22.06 $20.40
AZ Water Quality Tax $0.10 $0.10
Bill Total $357.11 $372.50
Dollar Amount Increase $15.39
Percentage Increase 4.3%

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Recommended Bill Comparisons

Commercial Bill Totals
2" Meter, 20K Usage

Water Base $287.80 $248.94
Water Consumption $161.60 $193.80
Sewer Base $160.19 $231.86
Sewer Consumption $50.20 $80.00
Environmental Fee $5.00 $5.00
Repair & Replacement Fee $3.05 $0.00
Sales Tax $42.54 $41.64
AZ Water Quality Tax $0.13 $0.13
Bill Total $710.51 $801.37
Dollar Amount Increase $90.86
Percentage Increase 12.8%

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Recommended Bill Comparisons

Commercial Bill Totals
2" Meter, 800K Usage

Water Base $287.80 $248.94
Water Consumption $6,464.00 $7,939.20
Sewer Base $160.19 $231.86
Sewer Consumption $2,008.00 $3,200.00
Environmental Fee $5.00 $5.00
Repair & Replacement Fee $3.05 $0.00
Sales Tax $628.67 $761.96
AZ Water Quality Tax $5.20 $5.20
Bill Total $9,561.91 $12,392.16
Dollar Amount Increase $2,830.26
Percentage Increase 29.6%

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